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When we entered the EB-5 industry, we noticed many similarities between this sector and our 1031 Like-Kind Exchange business. Regional Centers, like Qualified Intermediaries, hold investors’ funds with little governmental oversight. Both industries need services that provide security and transparency for the investors, while reducing the administrative burden on those holding the funds. Since entering the EB-5 industry, our solution has been well received, and we are now recognized as a leader bringing customized solutions to Regional Centers while providing financial security and transparency to the investors.

Due to our recent success and our development of a customized EB-5 escrow administration solution, NES Financial has been invited to join the best practices committee of the IIUSA Association. The IIUSA is a not-for-profit industry trade association comprised of active EB-5 Regional Centers, attorneys, and other EB-5 related service providers. IIUSA’s goals are to promote Regional Center’s operations and projects, maintain their best practices, and assist them in administrative, regulatory, and legislative matters.

The EB-5 program is an employment based visa preference category created by congress in 1990. This immigration program allows high net worth foreign investors to obtain their green card on an expedited basis, by providing capital to projects that stimulate the U.S. economy and ultimately create or preserve at least 10 full-time jobs for U.S. workers per investor. In return, developers and entrepreneurs gain access to a pool of capital, which they would not be able to access during today’s challenging economic environment. Using this program, developers across the country are utilizing funds for construction projects in all sectors of the real estate market, which provides jobs and economic growth in areas of this country that are in need.

At NES Financial, our guiding principles have always been to improve funds security, transactional transparency and regulatory compliance during complex financial transactions. EB-5 escrows are no different. Our EB-5 Escrow Administration Solution’s administrative services benefit Regional Centers and investors alike. Our practices are certified annually for compliance under the SAS 70 Type II auditing standards, which is the same standard used by banks.

Along with assisting the Regional Centers in maintaining regulatory compliance throughout the I-526 application process, we implement the highest level of funds security for the investors, through partnership with highly-rated banks. Placing the money in escrow until the investor’s I-526 application is completely processed ensures that funds are immediately available for return in the event the investor’s application is denied. Our eSTAC platform’s enhanced encryption of transactional and client data provides the utmost security in the industry. Plus, it’s the ultimate transparency solution due to its multifaceted capabilities, which enable the Regional Centers to monitor all facets of their escrow account and even allow each investor to see the status of their funds, documents and transactions 24/7.